#FDIC Restricts Banks from Using Ethereum#
Hot Topic Overview
Overview
The Federal Deposit Insurance Corporation (FDIC) is taking a cautious approach to banks using public blockchains like Ethereum, requiring banks to undergo more rigorous scrutiny before using them. According to unredacted documents obtained by Coinbase, the FDIC appears to be unhappy with banks choosing to use public blockchains over private permissioned networks, and has instructed banks that they must undergo a new, detailed review process before launching any products on public blockchains. Additionally, the FDIC has ordered member banks to cease implementing services related to the buying and selling of Bitcoin, and has instructed member banks to "pause all activities related to crypto assets."
Ace Hot Topic Analysis
Analysis
The Federal Deposit Insurance Corporation (FDIC) is cautious about banks using public blockchains like Ethereum and requires banks to undergo more stringent scrutiny before using them. This news comes from a trove of unredacted crypto-related communications between the FDIC and its member banks obtained by Coinbase through a Freedom of Information Act request. The documents reveal that the FDIC expressed disapproval of a bank's plan to launch a "bank digital deposit" program on a public blockchain, suggesting that banks should opt for private permissioned networks instead. The FDIC believes that the decentralized and transparent nature of public blockchains poses risks, while private permissioned networks offer better control and management. Additionally, the FDIC has requested that member banks cease implementing services related to buying and selling Bitcoin and has instructed member banks to "pause all activities related to crypto assets." This incident indicates that the FDIC is wary of banks using cryptocurrencies and blockchain technology and desires stricter regulation of these technologies.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
FDIC discourages member banks from using public blockchains such as Ethereum, citing risks associated with their decentralized and public nature.
FDIC favors member banks using private permissioned networks to ensure control and oversight of the network.
FDIC has established a rigorous review process for member banks launching products on public blockchains.
FDIC requires member banks to pause activities related to crypto assets, including buying and selling Bitcoin.